Introducing Orion.

[Orion]

Good morning !

I am a 25 year old student (about to finish my – too? – long studies).

I have been interested in the world of finance for over a year and until now I have made my investments (very modest, having no stable source of income) in ETFs.

I'm not unhappy with it but I'm looking to learn more. That's how I came across the book. The determinants of wealth. A pleasant and oh so instructive read, but also a demanding read for a neophyte like me.

I also happily discovered this site dividend.ch which seems to me, just like the book, to be full of a wealth of information.

If you allow me, I have a simple question to ask you:

I have read that it is not very wise for a small capital (which is my case) to undertake the implementation of the portfolio strategies mentioned in the book. For my part, I have a very simple ETF portfolio seeking above all diversification. Is it relevant to stick to such an approach at the beginning? (the objective being, of course, financial freedom).

And sorry for the disconcerting naivety of my question! 🙂

Good day to you all!

[Jerome]

Welcome to you Orion

Thank you for your post and your compliments regarding the site and the work.

No worries about your question, you have to start somewhere. We've all been there.

As I state in "The Determinants of Wealth", more complex strategies, based on stocks among others, should rather be reserved for already fairly well-stocked capital, of the order of 50k. Below that, it is better to stay on one or more ETFs, for the sake of diversification and transaction costs.

That being said, I completely understand that you might be impatient. I've been there too. Nothing prevents you from buying a few lines of shares for fun. If that's what you want, I advise you to go through a cheap broker like IB or DG. And of course, you keep your ETFs as portfolio funds.

 

[Orion]

Hello Jerome and thank you for your message!

It's true that I'm a little impatient! I find it intellectually stimulating and, to be completely honest, I like it a lot. At the same time, I'm (re)reading your work and that of Benjamin Graham, The Smart Investor.

I note that ETFs are preferable for the time being. A real estate ETF like Lyxor FTSE EPRA/NAREIT Global Developed UCITS Does it seem relevant to you as a single line? Knowing that I already have two AVs in which I have world ETFs and Smart beta.

And as for stocks, the book written by B. Graham, Security analysis, does it seem to you to be a good entry point for a beginner in value investing?

I wish you a good day!

 

[Jerome]

I don't know what your capital is, but for a start I actually think that going through a real estate ETF is a very good thing.

Security Analysis will be, I think, a bit too full-bodied at this level. After The Intelligent Investor, I recommend "Investing in Long-Term Stocks" (see "Reference Books" under the Tutorial menu). It's a bible and will allow you to understand a lot of things. The reading is much more digestible than Security Analysis, which you can jump on a bit later.

For the rest I suggest you ask questions in the members section of the forum. I have just given you access to it.

 

 

[Author]

Posts